It could be hard to hear “Excuse me, but we should because of your credit report”. Think about building credit report before that moment.
Credit report is detailed file of an individual's credit history. Credit report captures financial information that lenders use to determine your creditworthiness.
Credit score, also known as your FICO score, is the unit to determine how good is your credit report. It will go up or down based on many factors.
Credit report is like a pizza from many ingredients. So what “ingredients” should you take into consideration?
Personal identifying information: name, current and sometimes also past addresses, date of birth, social security numbers (if required) and employer information, marital status, contact information.
Accounts: Revolving credit and/or installment loans including account status, contact information, credit limits or loan amounts, recent payments.
Payment information: the loan term, monthly payment, monthly payment information on all accounts, original loan amount/credit limit/high balance. Payment history has the most impact on your credit scores.
Public records: this is any legal obligations, including bankruptcies, tax liens, civil judgments.
Debts: on accounts, credit cards and auto or other loans.
Negative information: paying late ot not paying at all, collection accounts, settled accounts, defaulting on a loan.
Start this race for better credit score and fight for credit points not because you want to beat someone but because potential for your future.
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